Microsoft sues Samsung over patent royalty payment issues

2014 is shaping up to be a bad year for Samsung as it faces another lawsuit from its long time partner, Microsoft.

According to a blog post by Microsoft's deputy general counsel David Howard, the company was forced to file legal action against Samsung after the latter failed to pay its royalties on time. Apparently, the problem started in September 2013 after Microsoft announced that it was acquiring Nokia's Devices and Services Unit.

Microsoft - " In September 2013, after Microsoft announced it was acquiring the Nokia Devices and Services business, Samsung began using the acquisition as an excuse to breach its contract. Curiously, Samsung did not ask the court to decide whether the Nokia acquisition invalidated its contract with Microsoft, likely because it knew its position was meritless."

Both companies spent months trying to resolve the issue, but Samsung made it clear that there is "a fundamental disagreement" to the meaning of the contract it signed with Microsoft in 2011. Microsoft states that it is asking the Court to settle the disagreement and remains confident that the contract will be enforced. Shortly after, Samsung issued a statement on the matter:

Samsung - “We will review the complaint in detail and determine appropriate measures in response.”